A BUSINESS development in the region that could accommodate up to 700 workers has received planning approval.

Gladman Development is investing £28m in three new warehouse units on the Drum Industrial Estate, in Chester-le-Street, County Durham.

The company, which has a turnover of £200m, expects to start work on the development in late summer.

Approval for the scheme was granted by Chester-le-Street District Council's planning committee on Monday, with a condition that Gladman pays £1m to the council for a new roundabout at the entrance of the industrial estate, off the A693.

Councillor Chris Jukes, portfolio holder for regeneration, said: "I am delighted to see this level of investment taking place within the district.

"Drum has long been recognised as having potential to provide such employment opportunities, which are crucial to the long term economic stability of the district.

"I am also particularly pleased to see that the development will provide funding to secure much-needed highway infrastructure to the area. This can only further improve the attractiveness of Drum to future investors."

Kevin Edwards, Gladman's director, said: "We are pleased to have worked alongside the district council to resolve any highway issues and design criteria. We now look forwards to starting work on the site."

Cheshire-based Gladman intends to submit a planning application for a second plot of land on the Drum Industrial Estate in the next few weeks.

It bought a 14-acre site on the west side of the estate from Robert Wiseman Dairies for an undisclosed sum and intends to construct a range of office buildings and warehousing units.